Do I need to create salary sacrifice as pay category for the STP Phase 2?

Hi rosam,

If you're using the common deduction category, the system automatically updates the payment classification for you. If you've created a custom salary deduction category in QuickBooks Online Payroll, you'll have to make sure to manually map to the Salary sacrifice (other employee benefits) classification. Here's how:

1. Click on the Employees, then select Payroll Settings.

2. Click on Deduction Categories.

3. Select the deduction you created manually, and change the Classification. Here are the 2 new payment classification options in the deduction category settings:

• Salary sacrifice (superannuation) 
• Salary sacrifice (other employee benefits) 

You're all set once you've mapped the classification of the customised deduction category you've created.

To learn more about deduction categories for STP Phase 2, you can check this article on Update deduction categories for STP Phase 2.

Feel free to reply to this thread if you need more help with QuickBooks Online Payroll. We're here to help you.